Europe's biggest carmaker reported operating profit of 2.9 billion euros ($3.3 billion) for the first three months of the year.

Volkswagen said on Wednesday it expects profit margins this year towards the bottom end of its forecast, the latest automaker to strike a downbeat tone as an industry already pressured by costs and competition grapples with tariff uncertainty.

The carmaker confirmed its guidance for the year, but said tariffs, political uncertainty and geopolitical tensions could pressure its return on sales, cash flows and liquidity.